September 16
Apple target reached, but keep holding.
Nearly eleven months ago I wrote about how
ridiculously underpriced Apple's shares were, and told a bunch of people about my analysis. Everyone just worried about either the recession, after all Apple sells discretionary products, or about Steve Jobs' health. Well less than a year later those shares have now doubled with Apple crossing $180 today. A few months ago I re-analyzed Apple, and again found that using the most conservative fundamental analysis, that Apple shares were a steal under $180, and that's if you didn't think the company was an industry darling, and had only moderate growth ahead of it.
I'm not great at setting a target sell price, but I can tell when something's underpriced, and I still think Apple has room to run. I have a hunch that the stock will continue to rise until around July of 2010 when Apple finishes recognizing iPhone revenue from Q4 08, and thus GAAP earnings will certainly be at an all-time high. So my hope is for $250 by next summer, but that's really just guessing what the market will do.
It's not every day that the market misprices a well-known company like this, so I've been wondering if my AAPL purchase from last year will be the best investment of my lifetime.
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